This week, decentralized cryptocurrency trading platform THORSwap resumed full operations following a six-day hiatus brought on by the discovery of funds linked to the insolvent exchange FTX.
As a preventative measure on October 6th, THORSwap halted swaps and liquidity actions once the anonymous FTX exploiter’s activity was discovered on the exchange.
Elliptic, a blockchain analytics company, claims that the exploiter used THORSwap to convert ETH to traceable BTC.
According to the company, its quick stoppage was done to look into and isolate any connected accounts before carefully resuming service. THORSwap said in an update on October 12th that it is now again available for users to continue decentralized trading of more than 5,500 assets.
THORSwap revised its conditions prohibiting illicit activity as part of its relaunch, and it made clear that it might suspend accounts that violate money laundering or sanctions laws.
The platform’s decentralized ethos, according to opponents, was violated by this.
According to Erik Voorhees, the founder of ShapeShift, THORSwap is distinct from the decentralized THORChain network it uses. THORSwap has the flexibility to make decisions like service shutdowns because it is a centralized business.
Additionally, THORSwap disclosed a fresh alliance with an undisclosed market titan in order to strengthen security measures against fraudulent transactions. Fine-tuning may still take place in the upcoming days, according to the exchange.
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